HONG KONG—A Hong Kong court on Friday opened the door to potentially giving thousands of foreign household workers in the city a chance to apply for permanent residency, a decision likely to fuel further tensions over immigration and could mark a major change in Hong Kong's labor market and social fabric.

Domestic Helpers Win Ruling

Eman Villanueva, vice chairman of the Filipino Migrant Workers Union, celebrates Friday with others after the High Court ruled that it is unconstitutional for the government to deny foreign domestic helpers permanent residency in Hong Kong. Reuters

The legal victory by Evangeline Banao Vallejos, a Filipino maid who has lived and worked in Hong Kong since 1986, could pave the way for the city's 270,000 foreign domestic helpers to qualify for residency as other foreigners are allowed to do under the territory's Basic Law. Permanent residency in Hong Kong means a person can remain in the territory indefinitely, and can't be deported. Permanent residents also have the right to vote and to stand in elections.

The divisive case has stirred up strong emotions in Hong Kong, where foreign laborers are widely seen as integral to its way of life. Most middle and upper-class residents have live-in helpers, who handle household duties and help with child care. And while the government makes some guarantees for domestic helpers, such as a minimum wage of 3,740 Hong Kong dollars (about US$480) a month, there is little oversight on their working conditions.

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Labor and human-rights advocates said the ruling in favor of Ms. Vallejos represents an important step toward dismantling the system that treats foreign maids—most of them women from the Philippines and Indonesia—as second-class residents. An Oct. 26 hearing will discuss how the judgment will be implemented.

"Today is a victory, not only for migrant workers but also for justice and fairness," said Eman Villanueva, a migrant-rights activist. "But our fight doesn't end today."

Mr. Villanueva and other activists have called on the Hong Kong government to review the labor policies that "have treated us like slaves," he said.

In response to the ruling, Ms. Vallejos, who didn't appear in court Friday, said to her legal team "thank God." Defense counsel Mark Daly said that she was busy working and was pleased with the ruling, adding she had "clearly won her case."

The case drew fierce opposition from some Hong Kong lawmakers and workers' groups who fear maids will bring their children and other family members en masse to the city upon receiving permanent residency, putting a strain on the schools, hospitals and housing market. Regina Ip, a pro-Beijing lawmaker, said the ruling has "severe implications for Hong Kong's long-term population policy."

Battle for Equality

A Filipina domestic worker is fighting for the right for permanent residency in Hong Kong's High Court. But the case strikes at the core of much more than just the right to abode. WSJ's Lam Thuy Vo and Isabella Steger report in an August video.

Don Wong, part of a group called Hong Kong Social Concern Group, said: "If migrant workers win, it's bad for Hong Kong's development, for example, in education, health care and housing."

Activists dismiss the claim that the right of abode would open the floodgates for migrant families. Mr. Villanueva called the concerns "baseless" and "malicious."

Mr. Lee said about 120,000 domestic helpers have lived in Hong Kong for seven consecutive years or more—the minimum stay required for permanent residency. Rights groups say that figure doesn't reflect the number of potential applicants because there are other eligibility requirements, and that many wouldn't necessarily want to apply.

Both sides will return to court on Oct. 26 to discuss the practical implications of the ruling, including how it will be implemented, Mr. Daly said.

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